In May 2024, the average rate on new operations for home purchases decreased to 3.61%, compared to 3.67% in April 2024 and 4.42% in December 2023. This is the sixth consecutive month that has recorded a decreasing change in the average mortgage rate. This is what emerges from the usual monthly report of the ABI, where we also read that the average rate on new business financing operations decreased to 5.21% compared to the 5.30% of April 2024 and to the 5.45% of December 2023.
Overall, the average rate on total loans (therefore subscribed over the years) is stable at 4.81%. As regards interest rates on funding, the rate charged on new fixed-term deposits (i.e. certificates of deposit and time deposits) in May 2024 was 3.51%. In April 2024, this rate was higher in Italy than the euro area average (Italy 3.59%; euro area 3.46%). Compared to June 2022, (last month before the ECB rate hikes) when the rate was 0.29%, the increase was 322 basis points.
The yield on new issues of fixed-rate bank bonds in May 2024 was 3.52%, an increase of 221 basis points compared to June 2022 when it was 1.31%. The average rate on total deposits (certificates of deposits, savings deposits and current accounts) remained unchanged, standing at 1.04% in May (same value as the previous month; 0.32% in June 2022).
The rate on current account deposits only is also unchanged compared to the previous month, at 0.57%, keeping in mind that the current account allows you to use a multitude of services and does not have the investment function. Finally, the spread between the rates on new loans and those on new funding with families and non-financial companies stood at 196 basis points in May 2024.
